TMI Blog2019 (12) TMI 865X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee at Indore has filed the present petition being aggrieved by notice dated 22.9.2019 (Annexure P/1), by which the assessee has been informed that he is being assessed at Chennai. The assessee who is the petitioner before this court Athena Trade Winds Pvt. Ltd. has stated in the writ petition that a search and seizure operation under Section 132 of the Income Tax Act, 1961, were carried out in the group Kaleshwari Refinery Pvt. Ltd and others on 17.5.2017 and summons were issued under Section 131 to several persons related to the groups also to one Shri Vivek Pathak, Director of the petitioner Company to present himself on 19.5.2017 before the Officer of Director of Income Tax (Investigation), Chennai. The statement of Vivek Pathak, Director was noted down under Section 134(4) and 132(4) of the Income Tax Act, 1961 on 19.5.2017. He has categorically stated that the petitioner Company is having business transaction with KRPL and its subsidiary KICPL based at Singapore and the Company is acting as broker for them and in return gets commission income only. 2. Thereafter, a search was conducted under warrant of authorization issued in the name of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... held as under :- The short question that arises for consideration is whether failure to record the reasons in the order which was communicated to the appellants is violative of the principles of natural justice for which the order should be held to be invalid. Section 5(7A) was the corresponding section in the Incometax Act, 1922 (briefly the old Act). The section may be set out: The Commissioner of Income-tax may transfer any case from one Income-tax Officer subordinate to him to another, and the Central Board of Revenue may transfer any case from any one Income-tax Officer to another. Such transfer may be made at any stage of the proceedings, and shall not render necessary the re- issue of any notice already issued by the Income-tax Officer from whom the case is transferred . The successor section under the Income-tax Act, 1961 is section 127 and the same may be set out: Transfer of cases from one Income-tax Officer to another:- (1) The Commissioner may, after giving the assessee a reasonable opportunity of being heard in the matter, wherever it is possible to do so, and af ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tions in relation to the said case as the Board or the Com- missioner (or any Inspecting Assistant Commissioner authorised by the Commissioner in this behalf) may, by general or special order in writing, specify for the distribution and allocation of the work to be performed . (2) The transfer of a case under subsection (1) may be made at any stage of the proceedings, and shall not render necessary the reissue of any notice already issued by the Income-tax Officer or Income-tax Officers from whom the case is transferred. Explanation:-In this section and in sections 121, 123, 124 and 125, the word 'case' in relation to any person whose name is specified in any order or direction issued thereunder means all proceedings under this Act in respect of any year which may be pending on the date of such order or direction or which may have been completed on or before such date, and includes also all proceedings under this Act which may be commenced, after the date of such order or direction in respect of any year. Unlike-section 5(7A) section 127(1) requires reasons to be recorded prior to the passing of an order of transfer. The i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessment. Such an opportunity is not available to an assesse under section 127(1) of the Act. The above decision is, therefore, clearly distinguishable. We are, therefore, clearly of opinion that non-communication of the reasons in the order passed under section 127(1) is a serious infirmity in the order for which the same is invalid. The judgment of the High Court is set aside. The appeal is allowed and the orders of transfer are quashed. No costs. 7. Learned counsel for the Income Tax Department has placed reliance upon the judgment delivered by this court in the case of Ambika Solvex Others v/s. Commissioner of Income Tax Others , (2014) 23 ITJ 165 (MP) , she has placed heavy reliance on para 25 of the aforesaid judgment. The aforesaid para makes it very clear that the order for transfer of the cases in the aforesaid case was passed after affording an opportunity of hearing to the petitioners therein and to all other concerned persons by assigning cogent reasons and the procedural requirement of Section 127(2) was complied with. 8. In the present case, the procedural requirement as provided under ..... X X X X Extracts X X X X X X X X Extracts X X X X
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